Amazon Ends Affiliate Program in California After Sales Tax Law

By Jason Boog Comment

Last night California governor Jerry Brown signed a new law that will enforce sales tax for online retailers, prompting Amazon to end its affiliate program in the state.

The Los Angeles Times has more about the law: “The online sales tax law, AB 28 1x, would seek to force online retailers who have no physical presence in California, such as, to collect the same levies as bricks-and-mortar stores. Lawmakers calculated it would net the state $200 million. Retailers from Wal-Mart to mom-and-pop bookstores had pressed for the tax law rewrite.”

Amazon has already modified its operating agreement for affiliates linking to Amazon products on their sites: “if at any time following your enrollment in the Program you become a resident of California, Colorado, Illinois, North Carolina, Rhode Island, or Connecticut, you will become ineligible to participate in the Program.” Over at BoingBoing, you can read a complete copy of Amazon’s letter to affiliates that called the new tax bill “unconstitutional and counterproductive.”